Toronto-Dominion Bank (TD.TO)

Earnings disappointed today, withdrawing some guidance. Not looking good from a fundamental perspective. He thinks they're just getting rid of all the bad stuff at this point, a clean sweep for the new CEO. 

Technically, pulled back to the bottom of the range of support, looks like it will hold. Could have a few days of really negative performance. Once things settle down, it will meander around here a bit. Eventually, the negative news will wear off.

The fine of $3B (over $4B CAD) was mostly provisioned for in stages. Focus will be on adjusted EPS. Likes the business, though displeased with breakdown in governance and integrity. Tarnished, but not beyond redemption. Discounted valuation is compelling -- margin of safety, attractive entry point. Cautiously optimistic that the worst of the bad news is behind it.

He's been selling MFC, with most proceeds going here. Sold off on money-laundering fine and asset cap in US. Market's negative on it, but he sees many ways to grow earnings: grow Canadian operations and US commercial. Great opportunity at 10x PE.

Thought the fine was already priced in, so he was surprised by the huge drop once announced. Big issue is that US franchise was on autopilot, without the great returns from the Canadian side. A chance to reboot. Risk management should improve, and the multiple will come back. Acquisitions are restricted. Lots of capital on hand.

Not a high multiple at 1.2x book, 10x PE. Probably can't buy it any cheaper. Yield is over 5%.

He's swing-traded it twice, but not in it now. You always have to decide if there's a reason for it to go back to the top of its range. Fundamental analysis doesn't like the stock anymore because of all its mistakes, even though looks enticing on the technicals. They've stepped aside.

Banks in general are entering a normal level. Concerns about high interest rates and defaults are mostly in the past. Banks are good to hold here if you want some dividend-paying stocks. Can't imagine this one will be stuck in the penalty box forever.

It has come way down with the money laundering scandal. It decided what it will pay but the stock dropped again so it has been doubly punished. Now trading below 10X - the valuation and dividend are OK. Has a new CEO and will manage the U.S. situation OK so could be fine over time. Any positive news could cause it to head back up so it is buyable.

Money-laundering fine. Asset cap on growth will really hamper growth in US. Perhaps can focus more on Canada where they've been increasing deposit base and credit card business. Depressed valuation is an entry point. Attractive dividend. Opportunity to turn it around over the medium term.

Is cautious the banks, but the band have rallied the last 6 months except this. He wold nibble at it here, that's all. Doesn't see the penalty for money-laundering being lifted.

If you're in a bull market, you want to own the strongest stocks you can find. He prefers "good, getting better", some kind of positive change that could add to the valuation, and where other people agree with him.

In penalty box. Facing painful changes. Many shareholders are underwater, so you have to fight your way through all those who just want their money back. He owns RY, CM, and NA.

Paid a huge fine recently, but remains among Canada's top two banks. The bad news is impacting the stock price, so there's lots of volatility. She sold TD 1.5 years ago and holds Royal instead. That said, it can go up from here, given the number of mortgages approaching renewal in the coming 12 months. Be cautious and wait for the share price to recover, despite its attractive dividend.

Current owners should own, and those who don't should pick up some shares now. Pays an attractive 5.2% dividend yield, and will offer some share appreciation over time as this recovers.

The penalty imposed by the US and the cap on growth led to these shares sliding hard. It now trades at 9.6x forward PE or 18% below its peers. So, the selling is overdone and he sees at least a partial recovery ahead. TD can still grows its Canadian market and capital securities business at 5% growth. TD ranks third in profitability on the basis of ROE .

Historical, unprecedented valuation discount (high teens) to peers. Before the money laundering and failed M&A clouds appeared, used to trade at high-single or low-double digit premium. Reputation tarnished. Cap on size of US balance sheet.

Will work night and day to make itself squeaky clean again and return to growth trajectory in the US. Excess capital to be deployed in some fashion by new CEO -- buy back shares, increase dividend, M&A. Good time to own and add.

Never owned TD because it was expensive, but it could be interesting now. We know the US fine. They can't expand in the US, so what will US earnings growth be? Also, the credit cycle has another 6-18 months, so how much longer will banks have to hold reserves? He might buy in the low-70s and high-60s.